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Crosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and
Crosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and activity rates for the hospital indirect costs: Activity Activity Rate Room and meals $194 per day Radiology $274 per image Pharmacy $46 per physician order Chemistry lab $79 per test Operating room $700 per operating room hour The activity usage information associated with the two patients is as follows: Line Item Description Abel Putin Cheryl Umit Number of days 4 days 9 days Number of images 5 images 6 images Number of physician orders 7 orders 9 orders Number of tests 5 tests 8 tests Number of operating room hours 4.5 hours 7 hours a. Determine the activity cost associated with each pa
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